Senate debates

Thursday, 18 June 2020

Questions without Notice

Aged Care

2:55 pm

Photo of Jess WalshJess Walsh (Victoria, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Aged Care and Senior Australians, Senator Colbeck. Minister, is there a difference between after tax and before tax?

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Minister for Aged Care and Senior Australians) Share this | | Hansard source

I thank Senator Walsh for the question. There is clearly a difference between after tax and before tax. I think that would be a statement of the obvious. But it doesn't mean 'not subject to tax'.

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Senator Walsh, a supplementary question?

2:56 pm

Photo of Jess WalshJess Walsh (Victoria, Australian Labor Party) Share this | | Hansard source

Minister, in your media release of 20 March 2020 you state that the retention bonus for aged-care workers is a payment of up to either $800 for direct care workers or $600 for in-home-care workers after tax. However, the fact sheet on your department's website says these payments are before tax. Minister, how can both of these be correct?

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Minister for Aged Care and Senior Australians) Share this | | Hansard source

As I said in my answer to Senator Walsh's primary question, it does not mean 'not subject to tax'. As I've said in this chamber on a number of occasions this week—and Senator Walsh has acknowledged in her questions a number of times herself—the commitment that this government made to aged-care workers—who I might say are the only group within the Australian economy that have received specific support through the COVID-19 circumstance, in acknowledgement of their importance to managing COVID-19 within the aged-care sector—would be up to $800 and up to $600 for those working in home care. It's very, very important to acknowledge that fact. We've always said 'up to' those numbers. In fact, it's a significant contribution to aged-care workers of up to $1,600 and up to $1,200— (Time expired)

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

Senator Walsh, a final supplementary question?

2:57 pm

Photo of Jess WalshJess Walsh (Victoria, Australian Labor Party) Share this | | Hansard source

Minister, I refer to a worksheet on the tax office website designed for high school students in years 7 to 10. Minister, using this worksheet and applying to it a residential aged-care worker working more than 30 hours per week, being paid at level 4 of the award, isn't it the case that the worker will be $260 worse off during Australia's first recession in 29 years because of your decision?

2:58 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Minister for Aged Care and Senior Australians) Share this | | Hansard source

The circumstance of any individual worker and their taxation liabilities will depend on their individual circumstances. I don't pretend to be able to calculate an individual's taxation circumstances, depending on—

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | | Hansard source

A point of order: at which point does this minister take any responsibility?

Photo of Scott RyanScott Ryan (President) Share this | | Hansard source

That's not a point of order, Senator Wong. The minister will continue.

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Minister for Aged Care and Senior Australians) Share this | | Hansard source

As I said, the individual tax circumstances of any worker, whether it's in aged care or any other industry across the country, will be determined by their individual circumstances.